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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
RBS Settles Investor Lawsuit Pertaining to 2008 Cash Call
[Photo: Fred Goodwin, Former CEO of RBS - Video Grab from 2009]
Royal Bank of Scotland reached an out-of-court settlement with organizers of the RBS Shareholder Action Group, ending a lawsuit that was spiced with the prospect of having disgraced former CEO Fred Goodwin testify about the bank’s financial issues leading up to a $15 billion cash call in 2008 – which management and directors of the bank failed to disclose.
The deal will cost RBS about $257 million, meaning that shareholders will get 82 pence per share, up from the 43 pence per share that the bank offered one week earlier. Investors who paid 200 to 230 pence for each RBS share in 2008 ended up losing about 80% of their investment.
Sir Fred Goodwin, who left RBS a wealthy man, became a symbol of banker recklessness and greed during the credit crisis. Goodwin, nicknamed "Fred the Shred" for his cost-cutting abilities and abrasive management style, was first feted and knighted before RBS's near collapse at the height of the credit crisis prompted the world's biggest bank bailout.
Some shareholders within the group wanted to pursue the case against the bank. However, they were short on funding and lawyers had advised that the case could have dragged on for years. In addition, investors representing 87% of the claim had already settled their case after RBS.